Title: The efficiency and the stability of efficiency rankings of Vietnamese commercial banks through mergers and acquisitions from 2008 to 2018

Authors: Phung Mai Lan; Nguyen Khac Minh; Pham Van Khanh; Nguyen Thien Luan

Addresses: The Faculty of Economics and Management, Thuyloi University, 175 Tay Son Stress, Dong Da District, Hanoi City, Vietnam ' TIMAS, Thang Long University, Nghiem Xuan Yem, Dai Kim, Hoang Mai, Hanoi, Vietnam ' TIMAS, Thang Long University, Nghiem Xuan Yem, Dai Kim, Hoang Mai, Hanoi, Vietnam ' Faculty of Mathematics and Informatics, Thang Long University, Nghiem Xuan Yem, Dai Kim, Hoang Mai, Hanoi, Vietnam

Abstract: This study applied DEA window analysis in combination with non-parametric testing to evaluate the efficiency of the Vietnamese commercial banks pre-and post-mergers and acquisitions (M&A) as well as to test the stability of the banking efficiency during M&A period. The results showed that the average technical efficiency calculated from the window analysis model ranged from 81% to 99%. Many banks carrying out M&As have grown in all aspects such as increasing in scale, improving technology capabilities and success management. However, there were also some banks that showed weakness through M&As. The reasons for the inefficiency of those banks were mainly the excess of customer deposits in balance sheet of the banks and their bad debts.

Keywords: DEA window analysis; banks; ranking statistics; mergers and acquisitions; Vietnam.

DOI: 10.1504/AAJFA.2024.139933

Afro-Asian Journal of Finance and Accounting, 2024 Vol.14 No.4, pp.581 - 604

Accepted: 05 Oct 2022
Published online: 12 Jul 2024 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article